August 24, 2004
Will Section 404 Costs Decline in Second Year....?
Concerns about Sarbanes-Oxley Section 404 continue to mount as deadlines loom. Many companies are not investing in any form of technology or infrastructure to manage their Section 404 efforts. Therefore, costs in the second year may not go down.
This article from TheStreet.com highlights this issue:
"Many observers expect the costs to subside somewhat after the first year, attributing much of the jump in fees and expense to companies having to get up to speed with the new rule. But some companies and experts warn that many of the costs may be a continuing expense.
Under SEC rules, for instance, companies and their auditors will have to test their control systems annually.
How much of the costs are one-time and how much are recurrent is a "real concern," said Jack Endean, president of the American Business Conference, which represents small and medium-sized growth companies."
For the entire article see: http://www.thestreet.com/stocks/troywolverton/10179706_3.html
See more information about Sarbanes-Oxley Compliance Playbook (tm) at www.issuescentral.com
This article from TheStreet.com highlights this issue:
"Many observers expect the costs to subside somewhat after the first year, attributing much of the jump in fees and expense to companies having to get up to speed with the new rule. But some companies and experts warn that many of the costs may be a continuing expense.
Under SEC rules, for instance, companies and their auditors will have to test their control systems annually.
How much of the costs are one-time and how much are recurrent is a "real concern," said Jack Endean, president of the American Business Conference, which represents small and medium-sized growth companies."
For the entire article see: http://www.thestreet.com/stocks/troywolverton/10179706_3.html
See more information about Sarbanes-Oxley Compliance Playbook (tm) at www.issuescentral.com
